How to Build a Better Business with Model Portfolios | ETF Trends

What do your clients really think about model portfolios? In a recently conducted extensive research study into model portfolio perceptions and adoption, WisdomTree found that many advisors have misperceptions about how clients perceive models.

In the upcoming webcast, How to Build a Better Business with Model Portfolios, Brad Shepard, Head of Advisor Innovation, WisdomTree Asset Management, will discuss how advisors could be missing out on an opportunity and how model portfolio strategies can provide value and elevate the client experience for financial advisors.

As a way to rethink the traditional 60/40 equity/fixed-income approach, WisdomTree has come out with the new Siegel-WisdomTree Model Portfolios designed to challenge the traditional investment methodology that may no longer be optimal for long-term investors.

“Our Modern Alpha ETF model portfolios are built differently, so they perform differently in today’s dynamic market environment. They are designed to give investors a smart way to access the global markets based on the distinct perspective of an investment innovator—while giving advisors the ability to effectively meet client needs,” according to WisdomTree.

“We go beyond basic market cap-weighted indexes. Our modular solutions offer a tailored investing approach that helps manage risk in today’s ever-changing environment.”

Shepard highlighted their research that found that while advisors may be using their own models, there may be some challenges with this approach, but advisors may find some advantages to using third-party models with their clients.

WisdomTree has found that advisors often appreciate the advantages third-party models can provide to their practice. According to a recent WisdomTree survey, 92% of financial advisors believe models could help improve the efficiency of their practice, 90% believe models provide a defined process that can help with increasing regulatory scrutiny and 66% of advisors believe their practice could better handle fee compression if they implement third-party models.

“Using third-party models in your practice could provide benefits for both you and your clients. They could help grow your business and meet your clients’ needs more effectively,” Shepard said in a note.

Financial advisors who are interested in learning more about model portfolios can register for the Tuesday, September 8, webcast here.